US retail sales in May beat expectations, increasing by 0.5%, more than the 0.4% that was expected. April figures were also revised upwards. The dollar strengthened on the release; gold fell away from its session high and year to date high of $1361.9.
Levels to watch:
Gold is currently testing support at $1348, although it remains above its 50, 100 and 200 sma. A break support at $1348 could see the precious metal test $1344 prior to $1330 and 1320. On the upside if $1348 holds, gold could advance back towards $1360.
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